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The China Corporation, Ltd.

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What are the minimum order quantities?

 

It is impossible to generalize about Minimum Order Quantities (MOQ) but here are some guidelines worth bearing in mind.

  • Given the extreme low cost of manufacturing products in China, and the increasing cost of oil, transportation costs are often the dominant contributor to the cost of products sourced in China.  Therefore, optimal pricing occurs when shipping in high volume.  If individual orders do not fill a standard ISO 20 foot container (about 1,000 cubic feet) then you will not achieve optimal pricing.  How important this is depends on the volume-weight-price combination for your particular product.

  • You can often break free of the minimum order quantities imposed by factories by paying for any product specific tooling in advance.  This front-loads the cost but gives you more flexibility with individual order size and may even reduce your overall per piece cost. 

  • We only work with companies that purchase US$50,000 in products from us on an annual basis.

  • As a general rule of thumb, if individual orders are less than US$5,000 in value, then you may achieve better pricing by purchasing domestically.

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